Hi to all,
Here’s what I have for this Thursday’s price changes:
*Heating and stove oils show a drop of 5.3 cents a litre.
*Diesel fuel shows a drop of 5.6 cents a litre, and...
*Gasoline shows a drop of 5.1 cents a litre.
U.S domestic output hits ten million a day
One week later than predicted, U.S domestic oil production hit 10.251 million barrels a day, showing a record weekly increase to break the 10 million barrier in good fashion.
The news was enough to spark a sell-off of oil with speculators now looking at growing production amidst cuts that were made to help support prices. Worries also centered on the fact that U.S domestic producers can come into the markets relatively quickly when the market conditions and price are right.
U.S rig counts have also increased as small producers get back in.
U.S EIA report shows a build in refined products
Last Wednesday’s Energy Information Administration report on inventories also was front and center in this week’s slide in oil and refined prices as all major inventory groups showed robust growth as refiner capacity climbed back up to 92.5 per cent capacity.
Gasoline inventories added 3.4 million barrels, while distillate also climbed by 3.9 million barrels, a possible signal of weakening demand as the markets concentrated on the March buying contract.
Next week’s outlook
While numbers are now showing just about another cent down for all fuels for next week, all is really going to count on the next U.S Energy Information Administration report to confirm further breaks to consumers for next week.
Any build in crude, gasoline or distillate this time around may force oil prices south of present levels and possibly signal further growth into a possible glut of oil south of the border.
Watch the Baker Hughes rig count that comes out on Friday as well that may still signal the entry of smaller producers into the U.S shale markets.
That’s it for this week!